National Herald case: Young Indian to deposit Rs 10 crore with IT department

The Delhi High Court has asked Young Indian Private Limited to deposit Rs 10 crore with the Income Tax department before April 15 in the National Herald misappropriation of assets case.

In an order on March 19, a bench consisting Justices AK Chawla and S Ravindra Bhat told the company to deposit at least half of the amount before March 31, while the rest needs to be deposited by April 15. The Income Tax department had demanded that the company deposit Rs 249.15 crore for the year 2011-12. 

On March 14, the company had challenged the tax department’s demand in the High Court seeking a stay on the proceedings.

Subject to the deposit of the amount, the Court has stated that the tax authorities shall not enforce the demand made. It has also sought the IT departments response to the plea. 

In November 2010, Young India was incorporated with a capital of Rs 50 lakh and had come to own almost the whole shareholding of the National Herald. The Gandhi’s were accused of misappropriation of Associated Journal Ltd’s assets which owns National Herald.